Bengaluru was the only city not to record a major yearly change in total sales number, according to Anarock.
Two property consultants on Thursday published reports that gave opposite numbers on home sales in India in the March quarter of calendar year 2020.
Sales in top seven cities went up 29 per cent on a yearly basis, said Anarock Property Consultants. As many as 58,290 homes were sold in quarter one of 2021 compared to 45,200 units in Q1 of 2020.
Mumbai Metropolitan Region (MMR) and Pune together accounted for 53 per cent of the sales. MMR sales increased by 46 per cent annually and Pune by 47 per cent, said Anarock. With about 8,670 units sold, Bengaluru was the only city not to record a major yearly change in total numbers this quarter.
US-based consultant JLL reported the opposite. It said home sales in the seven cities fell seven per cent in Q1 2021 on a yearly basis compared to Q1 2020.
JLL said residential sales in Q1 of 2021 (January-March) recovered more than 90 per cent of the volumes witnessed in Q1 2020 (before the coronavirus pandemic) across the seven cities,
Chennai, Hyderabad, Kolkata, and Pune surpassed sales volumes of Q1 2020. Overall sales increased by 17 per cent on a sequential basis. Importantly, sales either improved or stayed at similar levels (in Q1 2021 when compared to Q4 2020) in majority of the residential markets under consideration. Mumbai has consistently been the largest contributor to sales in the last four quarters. In Q1 2021, Mumbai accounted for 23 per cent of the sales, followed by Delhi NCR with a share of 21 per cent, JLL said.
Anarock said that new launches by 51 per cent during this quarter against the corresponding period in 2020.
New launches in the seven cities yielded 62,130 units in Q1 2021, against 41,220 units in Q1 2020. Again, Bengaluru was the only city to see a 11 per cent yearly drop in new launches. MMR, Pune, and Hyderabad together contributed 66 per cent of the total new supply in the quarter, it said.
Despite spiraling new launches in this and the previous quarter, unsold inventory in the top 7 cities saw a nominal yearly decline – from 6.44 lakh units towards Q1 2020-end to around 6.42 lakh units by Q1 2021-end.
“Demand boosters like stamp duty cuts, further reductions in home loan rates by most banks (to 6.70%) and ongoing developer discounts and offers helped the residential sector stage a convincing comeback in Q1 2021. Egged on by buoyant sales and enthusiastic consumer sentiment in the October-December period, developers launched several new projects in this quarter – with some spill-over from the pandemic-dampened 2020 pipeline,” said Anuj Puri, chairman of Anarcok Property Consultants.
“MMR and Pune were the most active in this quarter since the limited-period stamp duty cuts and other sops and discounts substantially reduced acquisition cost,” says Puri. “MMR’s homebuyers have responded proactively to the bottomed-out property prices in the country’s most expensive real estate market. This is adequately vouchsafed by the significant rise in property registrations in Mumbai in the first two months of the year.”
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